Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
As of Dec. 2023, Grand Baoxin Auto Group has a Sloan Ratio of 0.59%, indicating the company is in the safe zone and there is no funny business with accruals.
Grand Baoxin Auto Group Sloan Ratio % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Grand Baoxin Auto Group's Sloan Ratio %
For the Auto & Truck Dealerships subindustry, Grand Baoxin Auto Group's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Grand Baoxin Auto Group's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Grand Baoxin Auto Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Grand Baoxin Auto Group's Sloan Ratio % falls into.
Grand Baoxin Auto Group Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Grand Baoxin Auto Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Grand Baoxin Auto Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 353.891 (Jun. 2023 ) + -216.351 (Dec. 2023 ) = HK$138 Mil.
Grand Baoxin Auto Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -114.461 (Jun. 2023 ) + 305.201 (Dec. 2023 ) = HK$191 Mil.
Grand Baoxin Auto Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -136.565 (Jun. 2023 ) + -66.741 (Dec. 2023 ) = HK$-203 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Grand Baoxin Auto Group (HKSE:01293) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Dec. 2023, Grand Baoxin Auto Group has a Sloan Ratio of 0.59%, indicating the company is in the safe zone and there is no funny business with accruals.
Grand Baoxin Auto Group Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Grand Baoxin Auto Group's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Grand Baoxin Auto Group (HKSE:01293) Business Description
Grand Baoxin Auto Group Ltd is an automobile sales and service group which focuses on mid-and-high end brands as well as luxury and ultra-luxury brands. It has only one reportable segment being the Sale of Motor Vehicles and the Provision of Related Services. The company offers a full range of integrated services, providing a range of services including new car sales, after-sales maintenance, auto beauty modification, used car sales, auto insurance business, auto parts sales, and other automotive-related product sales. The company's car brand portfolio comprises of Audi, Jaguar Land Rover, Volvo, Cadillac, Chrysler, Alfa Romeo, Porsche, Rolls Royce, and others. The company operates in Mainland China.
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